Terms of reference

The Export Guarantees Advisory Council (the Council) is established under Section 13 of the Export and Investment Guarantees Act 1991 as amended by the Small Business enterprise and Employment Act 2015.

Statutory Purpose

The Export Guarantees Advisory Council (the Council) is established under Section 13 of the Export and Investment Guarantees Act 1991 as amended by the Small Business enterprise and Employment Act 2015.

The statutory purpose of the Council is to give advice to the Secretary of State, at his or her request, in respect of any matter relating to the exercise of his or her functions under the Act (relevant extract below). It does not perform executive functions or take decisions on UK Export Finance’s activities.

Section 13:

  • There shall continue to be an Export Guarantees Advisory Council.
  • The function of the Council shall be to give advice to the Secretary of State, at his request, in respect of any matter relating to the exercise of his functions under this Act.

Status

The Council is an Expert Committee.

Role

The Council will provide advice to Ministers and senior officials on the environmental and social impact of UKEF’s operations including the effectiveness of its policies on:

  • Climate change and sustainability;
  • Social impact and human rights;
  • Anti-bribery and corruption;
  • Sustainable lending; and
  • Transparency and disclosure

In addition, the Council will provide advice and guidance on the below.

  • The impacts of projects UKEF supports.

  • The formulation of UKEF policies and strategies of relevance to the Council, UKEF or Ministers.

  • Common technical themes arising from active cases with particularly challenging environmental, social, integrity related or other considerations.

  • Approaches to stakeholder engagement

The Council may meet periodically with interested parties e.g. i.e. exporters, banks, trade associations, civil society groups, to help inform its work and to facilitate dialogue with such parties.

UK Export Finance informs the Council of developments related to relevant international agreements and policies set by Ministers which guide UK Export Finance’s operations so these can be taken into account by the Council in providing its advice.

The Council chairperson meets annually with the Chair of the UK Export Finance Board to report on the activities of the Council and discuss issues of mutual interest.

The Council will undertake an annual review to assess whether it is being consulted in line with the above. This will be managed by the Council Secretariat.

Membership

The Council will normally have 8 standing members including the Chair. Membership may vary in accordance with the needs of the Council.

Members are appointed for their personal expertise, and for the relevance of that expertise to the Council’s remit and work programme. Council members are usually drawn from people with experience in commerce and international engagement and the application of sustainability and integrity related policies in the conduct of trade.

Council members, one of whom is appointed as Chairperson, are appointed by Ministers in line with the recruitment policies and procedures of the Office of the Commissioner for Public Appointments.

Terms of office can be for periods of up to five years and members may be reappointed for further terms. In accordance with rules laid down by the Office of the Commissioner for Public Appointments, the total length of service in any one post on the Council should not exceed ten years.

Appointments may be terminated at a Member’s request, or by Ministers if Members fail to perform as expected of them, with notice periods of not less than three months.

Although not members of the Council, UKEF Board Members and a representative of the Minister’s office have a standing invitation to attend Council meetings as observers.

During a meeting, the Council may ask any or all of those who attend but who are not Council members to withdraw, to facilitate open and frank discussion of particular matters.

The Chair

The Chair:

  • Is appointed by the Secretary of State, in accordance with rules laid down by the Office of the Commissioner for Public Appointments;
  • sits on the UK Export Finance Board in an ex-officio capacity.
  • sets the Council’s agenda each financial year in consultation with the Minister, the Accounting Officer and the Chair of the UK Export Finance Board, and decides the agenda of its meetings;
  • ensures the Council provides advice on those topics set out in this document (subject to relevant matters being placed before it by UK Export Finance for its consideration);
  • ensure a coordinated approach between the Council and the UK Export Finance Board;
  • ensures that effectiveness reviews and Member appraisals are carried out annually and implements action plans; and
  • nominates a deputy who will act as chair when the Chair is not available. If the Chair cannot attend a meeting, and a deputy has not been nominated in advance, a deputy will be selected by the other Members of the Council.

Quorum

A quorum is the Chair, their nominee or in the absence of the Chair or a Member nominated by the Chair, an interim Chair selected by other Members of the Council, and at least two other Members.

Meetings

The Council meets at least four times per year.

Papers for consideration by the Council may be circulated and approved by the Board via written procedure between scheduled committee meetings.  Quorum is consistent with meetings.

The Council records its deliberations and actions in minutes which are made public on UKEF’s website. The Council produces an annual report of its activities which is published in the UK Export Finance annual review and accounts.

Engagement with the Minister and the UK Export Finance Board

The Council’s purpose is to provide government with access to independent, impartial and expert advice, on request or otherwise. The Council will remain independent of Ministers.

Whilst most of the Council’s engagement will be with UK Export Finance officials and the UK Export Finance Board, the Council meets with the Minister once a year.

The Council has the right, where appropriate, to submit advice directly to Ministers. The Council’s engagement will mostly be with the relevant Minister with responsibility over UK Export Finance, however the Council may approach other Ministers it deems appropriate.

At the UK Export Finance Board meeting after each Council meeting, the Chair will share a report. The UK Export Finance Board may also request that EGAC look at specific matters falling within its areas of expertise.

Secretariat

The Secretariat is provided by UKEF.

The Secretariat supports the Chair to ensure the smooth running of the Board and is responsible for:

  • Assisting the production of the annual forward agenda and agendas for each board meeting;
  • challenging and ensuring the quality of Council papers and other information provided;
  • ensuring papers are received by Council members according to agreed timetables;
  • drafting minutes and recording Council decisions and ensuring actions are followed up; and
  • arranging induction for Members.

Council Effectiveness

The Chair appraises the performance of the Members annually and provides a report to the Minister.

The Council reviews its collective effectiveness annually.

Public service values

Council members are expected to:

  • Observe the highest standards of impartiality, integrity, and objectivity in relation to the advice they provide
  • be accountable to the Secretary of State for the Council’s activities and for the standard of advice they provide
  • follow the seven principles of public life set out by the Committee on Standards in Public Life.

Declaration of interests

Council members declare directorships and executive appointments held, and any substantial shareholding or interest held including any held by immediate family members. A Register of Interests is held by the Secretary.

Although legal proceedings by a third party against individual board members or advisory bodies are very exceptional, a Council member may be personally liable if a fraudulent or negligent statement is made which results in a loss to a third party. If a Council member has provided advice honestly, reasonably, without negligence and in good faith UK Export Finance will provide an indemnity against personal civil liability.

Review

These terms of reference will be reviewed by the Council as required, and no less frequently than bi-annually.

These terms of reference & operating principles are maintained by the Secretariat.

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